STRATEGIC MANAGEMENT IN HOTEL INDUSTRY

 

 

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Strategic Management in Hotel Industry

Introduction

The global hospitality industry continues to expand and grow despite unfavorable macro-environmental factors in some regions of the world. While the hotel industry remains the most visible and profitable sector of the hospitality industry, the proportion of multinational hotel chains expanding into the Middle East are more compared to other parts of the world (Telfer and Sharpley, 2015, p. 22). In particular, the United Arab Emirates is slowly emerging as a competitive destination for major hotel chains (Telfer and Sharpley, 2015, p. 22). Indeed, Dubai, one of the seven emirates that make up the UAE, has crafted a global image and reputation of luxurious living as demonstrated through extravagance in almost every aspect of life (Goeldner and Ritchie, B., 2006, p. 2). In the recent days, the City of Dubai has seen major architectural developments, and most of them are designed for the region’s hospitality and tourism industries. It is on this backdrop that Ajman Saray, a five-star luxury collection resort, seeks to position for greater growth and profitability. This paper presents a strategic plan for the hotel, highlighting major opportunities and threats the hotel faces in its macroeconomic environment.

Ajman Saray is a five-star luxury collection resort in the emirate of Dubai. The resort has over 200 suites and guest rooms featuring windows that stand floor to ceiling windows; this allows guests to have a fantastic view of the pool, gardens, and sea (Kenwood Travel, 2018, par. 2). The interiors of the hotel are characteristically luminous and luxurious thanks to an amazing color mix of azure blue, golden amber and rose pink. Ajman Saray is a family-friendly resort that offers a kid’s club with a complete outdoor swimming pool, indoor and outdoor play areas. Other amenities include a water sports center that offers a variety of activities.

Industry Overview

The UAE hotel industry is one of the most competitive in the global hospitality and tourism industry. Today, the industry is gearing up for exponential growth accelerated by upcoming major events, specifically the World Expo 2020 scheduled to take place in Dubai and the 2022 FIFA World Cup that will be hosted by Qatar (Alpen Capital, 2016, p. 2). In this respect, these two emirates, and the UAE, in general, are pumping huge investments to develop the local tourism and hospitality industry. Part of these investments includes the expansion of UAE airports’ capacity to accommodate the expected huge international arrivals for these global events. In summary, the future outlook for UAE’s tourism and hospitality industry is positive, both for local hotels and international hotel chains. Overall, the GCC (Gulf Cooperation Council) region, which comprises the oil-rich Gulf countries (the UAE, Bahrain, Qatar, Kuwait, Oman, and Saudi Arabia), recorded an estimated 53 million international tourists in 2015 (Alpen Capital, 2016, p. 2). This shows that the region had a CAGR of 8.3 percent from 2010 to 2015, a figure that is significantly higher than the global average of 3.9 percent (Alpen Capital, 2016, p. 3). Even though most of the tourists are local, arrivals from Russia, Asia, and Europe are also significant in terms of financial impact to the industry. Notably, these three international markets saw their share of GCC international arrivals grow by about 11.5 percent from 2010 to 2015 (Alpen Capital, 2016, p. 3). In 2015, Dubai was ranked the fourth most popular travel destination worldwide. Tourist arrivals in the emirate grew by over 12 percent from 2010 to 2015.

Macro-Environmental Factors Driving Growth

Economic: The apparent growth of UAE’s tourism and hospitality industry is based on environmental factors that, to a greater extent, support growth. Notably, the UAE has thriving meetings, incentives, conferences, and exhibitions (MICE) market segment that provides players in the hotel industry huge potential for growth and revenue generation (Abulibdeh and Zaidan, 2017, p. 152). Consequently, active development of hotel properties is another factor driving the global appeal of the UAE as a tourism and MICE destination (Peter and Anandkumar, 2014, p. 118). Overall, the UAE tourism and hospitality industry is expected to grow by approximately 7.6 percent compound annual growth rate (CAGR) from about US$ 25.5 billion in 2015 to approximately US$ 37 billion in 2020 (Benchabane,  n.d., p. 3). The long-term future of the industry is pegged on the robust development hotels something that is evidenced by the on-going pipeline of hotel projects.

Technology: Increased technological advancements focused on enhancing hotel operations is another factor enhancing the appeal of the UAE tourism and hospitality industry.

Political:  The UAE government is actively bolstering tourism activities in the region by creating favorable conditions for both local hotels and international hotel chains. The evidence of government support is seen through the actions of city-based government agencies mandated to oversee the growth of tourism and hospitality facilities. For example, the Dubai Department of Tourism and Commerce Marketing (DTCM) is on the forefront of packaging the city as a preferred destination for hoteling investments. Specifically, the DTCM is encouraging private sector investments in the city’s tourism and hospitality industry, building new tourist attractions, expanding airport capacity, and increasing promotion campaigns, both locally and specific overseas markets (Benchabane, n.d., p. 3). What is more, the UAE, and Dubai specifically, has actively been forging bilateral relations with other governments, including China and Russia, two of the largest sources of tourists arriving in the UAE. The continued reform of visa policies is another factor driving international arrivals in the UAE (Benchabane, n.d., p. 4). This is expected to boost the arrival of tourists and visitors for the two major events- World Expo 2022 and 2018 FIFA World Cup- as well as religious pilgrims to the region.

Sociocultural: The Middle East is known as a popular destination for religious tourism. Saudi Arabia, in particular, stands out as an important destination for Muslims intent on making the all-important pilgrimage to Mecca. In 2015, Saudi Arabia accounted for almost 70 percent of international tourists in the GCC block (Benchabane, n.d., p. 5). In the recent years, however, Saudi Arabia has been overwhelmed by the sheer numbers of pilgrims arriving in the country. Indeed, this provides a major opportunity for hotels in Dubai and the other emirates of the UAE. What is more, the growing global reputation of Dubai and the other emirates as centers of pleasure (shopping) and architectural innovation is attracting people from all over the world to witness this marvel. Indeed, World Expo 2020 entrenches Dubai as the global capital of shopping and exhibitions.

Critical Success Factors for Ajman Saray, a Luxury Collection Resort

Given the above macro-environmental factors and opportunities and potential threats confronting tourism and hospitality players in the UAE, it is clear that Ajman Saray should adopt a strategy for growth and profitability. This strategy should involve exploiting opportunities in the market/industry and avoiding the potential threats or converting them into opportunities.

Major Opportunities

For players in the UAE tourism and hospitality industry, the GCC region offers major opportunities for growth. Firstly, the continued facilitation of visa policies will see the number of international visitors arriving in Dubai, the UAE, and the entire GCC region grow tremendously. This reality provides a major opportunity for hotels in Dubai and the UAE to expand their bed capacity in anticipation of huge international tourists. Secondly, the players in the hotel industry have an opportunity to work closely with the UAE government and city authorities, such as the DTCM, to create a better tourism and hospitality environment. Considering the already existing government goodwill towards the sector, players in the industry can proactively inform the establishment of intelligent tax reforms that will foster private sector investments. Indeed, private sector investments in the industry would not only guarantee a competitive environment but a boost in tourism infrastructure for the coming 10 to 15 years (Benchabane, n.d., p. 2). What is more, with government support through reforms and a favorable tax regime, hotels can recruit and train the right people with the right skills to meet this future demand.

Thirdly, players in the industry have an opportunity to undertake strategic initiatives focused on the long-term sustainability of their operations. Indeed, players in the industry have a profit-oriented duty to safeguard the environment and ensure that the growth of the sector is both responsibly and sustainably managed. Fourthly, the expected market changes owing to significant investments towards Dubai Parks, Expo 2020, and the 2022 World Cup provide an immense opportunity for hotels in the UAE to enhance their operational capacity. There is no denying that these events and investments will see robust growth in international arrivals in the UAE and its emirates. Fifthly, despite hard economic times occasioned by global economic crises and fluctuating oil prices, travel and tourism spending in the UAE stood at US$ 34 billion in 2015. This was a reflection of 8.5 percent annual growth in leisure spending from 2010. What is more, the expected expansion of airport capacity in anticipation of international arrivals for the upcoming global events is another opportunity for the capacity boost for hotels in the UAE. So is the continued investment in theme parks and other attractions.

Another opportunity for hotels in the UAE is based on research findings that show government spending in the tourism and hospitality industry in the Middle East is set to grow by almost 3.7 percent every year from 2016 to 2026. At the same time, capital investments in the sector is predicted to grow by 5.5 percent over the same period.

Potential Threats

The UAE tourism and hospitality industry face multifaceted challenges and threats that require careful navigation by players in the industry. Firstly, the 2007-2008 and periodic slumps in oil prices significantly undermine spending, particularly on luxurious commodities, including travel for leisure. In the period 2010-2015, for example, spending by tourists in the GCC region, except in the UAE, fell by about 4.7 percent on a year-to-year basis even though leisure spending in the same period reported marginal growth. Secondly, the appreciation of the US dollar has made spending by international tourists, particularly from Asia, Russia, and Europe, a bit expensive in the GCC region. It is important to note that most currencies in the GCC are pegged on the US dollar. This is evidenced by the drop in the number of tourists arriving in the UAE from Russia beginning the second half of 2014.

Thirdly, the onset of political unrest and misunderstanding is another major threat to UAE’s tourism and hospitality industry. For example, the political crisis in Bahrain in 2011 and the crisis pitting Qatar and other Middle Eastern countries, including Saudi Arabia are a threat to the hotel industry in the entire GCC region. Notably, the onset of Bahrain crisis in 2011 saw international tourist arrivals slump by over 40 percent in the region. Fourthly, there is intense competition in the UAE tourism and hospitality industry. The apparent governmental goodwill in the industry has facilitated an environment where both local hotels and international hotel chains fight for recognition and profits. Some of the globally renowned hotel chains in the UAE include Marriott International, Accor, Starwood Hotels & Resorts, and InterContinental Hotels Group. JW Marriott, Sheraton, and Holiday Inn are some of the five-star hotels operating in the UAE. Moreover, major international and local hotel operators have a combined pipeline of over 200 hospitality projects in the GCC; about 50 percent of them are in the UAE14. Specifically, Accor and Starwood Hotels & Resorts have over 27 and 37 hotel properties, respectively.

Evaluation of Success Factors- Key Growth Drivers

An analysis of the macro-environmental forces impacting the tourism and hospitality industry in the UAE as well as the possible opportunities and potential threats for industry players it is clear that Ajman Saray has a positive outlook in Dubai. Firstly, the upcoming global events- the World Expo 2020 in Dubai and 2024 FIFA World Cup in Qatar- are bound to accelerate the growth in the number of international tourist arrivals in the GCC region. For the World Expo 2020, Dubai anticipates over 25 million international arrivals from over 180 countries. On its part, Qatar anticipates close to one million international arrivals for the 2024 FIFA World Cup. Prior to this global mega sports event, the country will also host World Championships in Athletics in 2019. As a city famed for its architectural beauty and extravagance shopping experience, Dubai will definitely attract a substantial percentage of these arrivals. In this respect, Ajman Saray should invest heavily in expanding its operational capacity, especially bed capacity.

Secondly, by expanding its operational capacity, Ajman Saray benefit from religious tourism. As it stands today, Muslim pilgrims are exerting immense pressure on the hotel industry in Saudi Arabia. Through proper international promotion campaigns, the Ajman Saray can provide international pilgrims visiting Mecca an accommodation option. Thirdly, having being named as the fourth most attractive destination globally, Dubai is set to attract international leisure and business travelers. Even though the city has seen major arrivals from Russia, some parts of Asia, and some parts of Europe, this global ranking will see tourists from other regions of the world visit the city. This is also an opportunity that Ajman Saray should grab and expand its operational capacity. Fourthly, the growing MICE segment in the UAE provides an immense growth opportunity for Ajman Saray. As a five-star luxury collection resort, the hotel is strategically positioned in the UAE’s MICE market. The trend towards conference and exhibition tourism is unstoppable, and the only way to benefit from it is by expanding operational capacity. In this sense, Ajman Saray should introduce airport transfers in their accommodation packages to create competitive advantages.

Another success driver for Ajman Saray in the UAE tourism and hospitality industry is the continued government support for the industry. Notably, the UAE and the Qatar governments are heavily pumping funds into developing infrastructure, encouraging private sector investments, and running extensive international promotion campaigns in anticipation of the upcoming global events. In Dubai, these initiatives are captured in Tourism Vision 2020 strategy. By 2020, the emirate targets to attract 20 million international visitors on a year-to-year basis. Overall, countries in the GCC region are expanding the operational capacity of their airports and also developing infrastructure to boost visitor traffic to the region. For example, ranked as one of the world’s busiest airport, Dubai International Airport (DIA) served approximately 80 million passengers in 2015. The airport is expected to handle 90 million passengers in 2018 and 120 million passengers per year by 2023. The on-going expansion of Al Maktoum International Airport at Dubai World Central is expected to increase its capacity to handle 120 million passengers per year, thus reducing pressure at DIA. This is a major incentive for Ajman Saray to increase its operational capacity.

Most importantly for Ajman Saray, the emirate of Dubai is planning to add nearly 57,000 rooms in hotels and serviced apartments in the period 2015-2020 compared to Saudi Arabia’s on-going pipeline of over 48,000 rooms. This strategic plan by the emirate of Dubai presents Ajman Saray with an opportunity to boost its operational capacity. The on-going investment in theme parks all over the UAE is another opportunity for the hotel to expand its capacity. These include IMG Worlds of Adventure and Dubai Parks and Resorts. The latter incorporates zones, including Lapita, Motiongate, Legoland, Bollywood Parks, and Riverland. In 2017, Dubai Parks and Resorts attracted approximately six million visitors. Other key attraction sites in the UAE include Al Mamzar Beachfront, Bluewaters Island, Dubai Safari Park, MBR City, Pearl of Dubai, Museum of the Future, Aladdin City, Dubai Water Canal, and, Dubai Frame. In Abu Dhabi, the expansion of Ferrari World also provides an opportunity for Ajman Saray for those willing to engage in shopping.

Further, beginning 2014, the Dubai emirate has enhanced its tourism and hospitality market through calculated moves aimed at diversifying revenue sources. For example, the city has introduced a tax reprieve, a shorter approval time for constructions, and a grant of land plots to public sector investors. This is aimed at encouraging the development of mid-range to five-star hotels in the city. Apparently, Ajman Saray should exploit this opportunity to expand operations, maybe build another resort in the city.

Creating Competitive Advantage

Obviously, Ajman Saray faces intense competition not only in the GCC region and the UAE as a whole but also in its locality, the emirate of Dubai. Even though Ajman Saray has positioned itself as a five-star luxurious collection resort, it faces incredible competition from international chains with a presence in the UAE, such as Marriott International, Accor, Starwood Hotels & Resorts, and InterContinental Hotels Group. Accor and Starwood Hotels & Resorts have over 27 and 37 hotel properties, respectively in the UAE. To enhance its competitiveness, therefore, Ajman Saray must adopt winning competitive approaches.

Service Diversification

By definition, service diversification involves creating a multifaceted business operation that offers services for different market segments or target markets (Duman and Kozak, 2010, p. 89). At the moment, Ajman Saray offers the following services and facilities: Sauna, Children’s pool, Kid’s club, Spa (with beauty salon), Swimming pool, Private beach, Fitness center, Squash court, Concierge, Valet service, Laundry, Dry cleaning service, and Luggage storage. However, to meet the demands of a global tourist population with diverse needs, stemming from leisure, business, and religious travel, the hotel must diversify in terms of service offerings. While these products serve a global audience, there is a visible lack of specification in terms of target market.

One of the growth drivers in the UAE tourism and hospitality industry is religious tourism, where the entire GCC region subscribes to the Islamic faith. Indeed, this is the basis of the globally famous annual pilgrimage by Muslims to Mecca, in Saudi Arabia. As part of its growth strategy, Ajman Saray is supposed to offer these pilgrims an accommodation option to relieve the Saudi Arabia hotel industry the stress that usually accompanies these pilgrimages. Therefore, in diversifying its service offering, the hotel should specifically target Muslims. This will not only position Ajman Saray as an alternative accommodation center but also a responsive hotel that minds about the religious convictions of the Muslim international business or leisure tourist. Considering that Dubai is also a Muslim-populated emirate, the hotel will also attract the local population by virtue of its sensitivity to the Islamic faith.

In this competitive strategy, Ajman Saray should establish an arm that specifically caters to Muslims during sensitive religious obligations, such as Ramadan and others. Literature defines Islamic tourism as a new ethical dimension in global tourism (Al-Hamarneh, 2008, p. 4). In essence, Islamic tourism emphasizes on values that are regarded as highest epitomes of morality and decency (Zaidan, 2016, p. 110). Additionally, it encompasses respect for local beliefs and traditions, including the care for the natural environment (Al-Hamarneh, 2008, p. 4). In a way, Islamic tourism offers a new outlook on life and society, restoring back critical value systems that have eroded as a result of contemporary consumerism (Stephenson, Russell, and Edgar, 2010, p. 12). It also emphasizes the harmonious interaction of different cultures and civilizations. For Muslims travel is purposeful; it focuses on health (relaxation), the experience of other cultures, education (teaching, learning, or information sharing), and/or business (Al-Hamarneh, 2008, p. 4; Morakabati, 2013, p. 378).

Ordinarily, evaluation of service value is one of the critical aspects that inform consumer decision making process in the global tourism and hospitality industry. Research on consumer behavior agrees that consumers’ perceptions of value influence their satisfaction levels and future behavioral (purchase) intentions (Rauch, 2015, par, 3). In making the evaluating value of a service, consumers do comparisons between what they receive in terms of benefits and what they give up in terms of monetary and nonmonetary value (Zeithaml, 1988, p. 4). In the tourism and hospitality industry, this comparison takes a longer time, and involves high costs, due to the aspect of travel (Rauch, 2015, par, 4). In this sense, therefore, tourists spend considerable time in evaluating their experiences and demand high value for future consideration.

Notably, high-value tourism is characterized by emotionally satisfying, high-quality, reasonably-priced services that require less physical and psychological exhaustion. Reference to pre-purchase expectations is one of the aspects that influence consumer satisfaction and value evaluation and by extension repeat purchase. Fundamentally, consumers form their expectations with motivations and, as such, expect to experience benefits that align with their initial motivations (Rauch, 2015, par, 4). In Islamic tourism, however, religious requirements inform a completely different process in value evaluation. The shariah principles require Muslims to behave in certain prescribed ways when engaging in travel. For example, they are prohibited from consuming pork, gambling, engaging in adultery, consuming alcohol, and dressing provocatively (Battour and Ismail, 2016, p. 151; Kovjanić, 2014, p. 36; Zamani-Farahani and Henderson, 2010, p. 80). Additionally, Muslims are mandated under the Shariah principles to pray five times a day in clean environments and fast in the month of Ramadan. Islamic teachings also proscribe Muslims from engaging in excessive consumption and indulgence in pleasure (Hassan, 2008, p. 3). In view of the sharia principles, therefore, tourism for Muslims requires the facilitation of permissible/acceptable- halal- goods, services and environments.

On the basis of Halal tourism, Ajman Saray should diversify in service offerings to exploit the opportunity in Islamic tourism in the UAE and the wider GCC region. In observance of the halal concept, the hotel should provide amenities that are free of alcoholic drinks, but which have secluded rooms for prayers (Kalesar, 2010, p. 106). Additionally, the amenities should separate swimming pool and beach facilities for men and women and require and project-specific dressing code in certain areas (Henderson, 2008, p. 138). Moreover, opposite gender children of six years and above should not be allowed to share swimming facilities, and photography in swimming areas should be completely banned. The hotel, however, should use the amenity to promote and provide social programs in Islamic content.

Indeed, service diversification is good for Ajman Saray owing to the sociocultural aspect of the local tourism and hospitality, particularly the Muslim market segment. However, undertaking this diversification with a focus on halal tourism might make the hotel miss out on capturing the growing non-Muslim market segment driven my MICE tourism and leisure and business tourism. This means that for the hotel to address both segments of the market, it must invest heavily, maybe even establish a new venture that specifically targets the Muslim market. While this is strategic, it might not be financially feasible for the hotel. What is more, diversifying into halal tourism might expose the hotel to new dining requirements and new marketing dynamics that might require hiring a new set of professionals. Again, this comes with financial and service implications that might expose Ajman Saray to unexpected risks.

International Marketing Campaigns

As already observed, governments in the GCC region have been proactive in positioning the region for the upcoming global events. Specifically the World Expo 2020 in Dubai and the 2024 FIFA World Cup and World Championships in Athletics in 2019 both in Qatar, these global events are expected to draw millions of international tourists into the UAE, Qatar, and the entire GCC region. It is on this respect that Ajman Saray should design and implement an international marketing campaign to position itself as the preferred spot for dining and accommodation. Going by the statistics available, the World Expo 2020 is expected to draw over 20 million people while the 2024 FIFA World Cup will see over one million soccer fans visit the region. It is undeniable that these times will be of great business value to the UAE tourism and hospitality industry; however, to gain maximum value Ajman Saray must market itself beforehand internationally.

As literature puts it, value comparison in the tourism and hospitality industry is costly both with respect to money and time and this is all because of the aspect of travel. This means that most tourists expect their experiences to meet the expectations and motivations they had before purchasing the travel package. In this light, by initiating an international marketing campaign, Ajman Saray will proactively be engaging international travelers, shaping their expectations and motivations. Besides the global events, the UAE and the GCC regions is currently seeing a host of tourism and hospitality projects, especially theme parks, which are expected to enhance the attractiveness of the region to the international community. Among these crowd pullers are IMG, Worlds of Adventure, and Dubai Parks and Resorts; in 2017, Dubai Parks attracted over six million visitors. Definitely, a majority of these visitors are local; however, with the expected global events, these parks will also see an international population that will need dining and accommodation. This is another opportunity for Ajman Saray to initiate international promotions in Asia, Europe, Russia, and the Americas.

Another aspect of the UAE tourism and hospitality industry is the growing trend in MICE tourism. In the last one decade, the UAE, especially the emirate of Dubai, has grown in reputation as a preferred MICE destination. Indeed, this image is expected to grow even more owing to the ongoing governmental support of the tourism and hospitality industry. Specifically, the continued investment in the expansion of airport capacity, global promotional campaigns, and establishment of friendly tax regimes are aimed at positioning the GCC region as a preferred destination for MICE tourism. In light of these on-going developments, Ajman Saray should complement the efforts of the UAE government, including DTCM, by initiating an international marketing of its own across Europe, Asia, Russia, Latin America, and the United States. Connecting both the east and the west, Dubai is strategically positioned for MICE tourism, meaning that Ajman Saray and its competitors are bound to reap big going into the future.

Increased competition, particularly form international hotel chains is another aspect of UAE’s tourism and hospitality industry that Ajman Saray must take into account. Even though these multinational hotel chains, including Marriott International, Accor, Starwood Hotels & Resorts, and InterContinental Hotels Group, have a global reputation of quality and excellent service, they might not be strategic in addressing the sociocultural need of Islamic tourism. Currently, Accor and Starwood Hotels & Resorts have over 27 and 37 hotel properties, respectively, in the UAE. The only way for Ajman Saray to beat this formidable competition is to mount aggressive marketing campaigns overseas targeted at Muslims who make visits to the GCC region mostly for religious purposes. As literature on halal tourism indicates, hotels operating in the Middle East must observe central tenets of the Shariah principles if they are to capture the Muslim segment of international tourism. Considering that Muslims visit the holy land, Mecca in Saudi Arabia, every year for religious obligation, Ajman Saray should mount an aggressive marketing campaign in the Muslim world in places like Indonesia that lie outside the GCC region but are predominantly Muslim populated. This will give the hotel an upper hand above its competitors in offering dining and accommodation services to pilgrims visiting the region out of religious duty.

Even though this competitive approach is strategic, it comes with potential risks for Ajman Saray. Firstly, the hotel will have to invest heavily in international marketing, which might expose the hotel to financial difficulties. Funding an international marketing campaign is no easy task and might require contracting an internationally reputed marketing firm. Such firms do not come cheap. Again, there is no telling whether some of these events will take place as scheduled owing to the rampant security issues in the region, including political standoffs within and among countries.

Conclusion

There is no denying the fact that the global tourism and hospitality industry remains competitive despite unstable macro-environmental forces. Today, the UAE is among the most visited regions owing to its growing global reputation for architectural innovation, shopping escapades, and luxurious living. Indeed, the construction of megastructures, such as Burj Khalifa, has driven this global image and reputation. What is more, the ongoing construction of theme parks and hotel projects is expected to drive international arrivals in the region compared to any other part of the world. It is in this context that Ajman Saray must strategically position itself for growth and profitability. Currently, the governments in the GCC region, including the UAE government, are facilitating the tourism and hospitality industry through friendly measures. In Dubai, for example, the ongoing expansion of Dubai International Airport and Al Maktoum International Airport is expected to enhance the number of international arrivals in the emirate. Through the Dubai Department of Tourism and Commerce Marketing (DTCM), the government of Dubai is creating a conducive environment for investment in the local tourism and hospitality industry. Measures such as giving land grants to private sector players, reducing the time taken to evaluate and permit construction projects, and establishing a relaxed tax regime are meant to see the number of companies investing in the local tourism and hospitality industry grow in number. Most importantly, the UAE and Qatar and expected to hold three global events (World Expo 2020, 2024 FIFA World Cup. and 2019 World Championships in Athletics) with the capacity to draw millions of international tourists to the region.

In such a context, Ajman Saray has no choice but to position itself strategically above its competitors. Even though the international hotel chains with a presence in the region are globally famous for quality and excellent service, they might not be strategically positioned to address the sociocultural needs of the local culture. In this respect, Ajman Saray should diversify its service offering to incorporate halal tourism; this will see the hotel capture the Muslim segment of international tourism in the GCC region. Additionally, owing to the upcoming global events and the increasing significance of the region as a MICE destination, not forgetting the formidable competition from the international hotel chains, Ajman Saray should mount an aggressive international marketing campaign. Through these two competitive initiatives, the hotel is bound to reap big in terms of value in Dubai, the UAE, and the entire GCC region.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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